KCBD NewsChannel 11 LubbockFBI closes investigation into Lubbock City Hall

In May 2008, more than two dozen federal agents raided Lubbock City Hall. Now, almost four years later, the FBI is preparing to return everything that was seized. The investigation has been closed. Mayor Tom Martin has confirmed to KCBD NewsChannel 11 that the FBI's investigation is finished and no charges will be filed.

At the time of the raid, the government seized computers, electronic storage devices, electronic communication devices, computer equipment, digital storage media and computer passwords. All of that, along with boxes of documents - all outlined in a warrant that alleged conspiracy, false statements, wire fraud and health care fraud.

For four years rumors and suspicion circled around many of the elected officials, one of those being former city council member John Leonard.

On Tuesday he released this statement to KCBD:

"I am relieved that this four year personal nightmare is over. I have maintained my innocence throughout this painful process. It is unfortunate that the personal politics of destruction, initiated by a key elected city official and a few city bureaucrats against a handful of their perceived opponents, were so extreme and costly to the taxpayers of Lubbock."

Mayor Martin says the investigation is complete. He learned the status of the investigation this past week after speaking with the city's outside legal counsel.

"The FBI called and told the outside council to come pick up all the records that were seized four years ago," Martin said.

No charges will be filed, but millions of dollars were lost on lawsuits and civil matters that followed the raid.

"The last number I recall was somewhere in the neighborhood of $3.8 million dollars in legal fees that had been spent," Martin said.

The legal fees came mostly from a series of lawsuits, not the FBI raid at City Hall.

The City sued businessman Ted Parker, who in turn filed a countersuit. The city also sued Covenant Health System and its own liability insurance company. Parker sued certain city officials individually, and at least two lawsuits are still pending between Parker's companies and the City.  Covenant was sued for access to medical records, not money, and a federal judge dismissed it.  And now, Parker no longer has majority interest in his companies.

Parker's company Icon/AAG was the city's health insurance administrator during the time in question. The city is self-insured so Parker did not provide insurance, but rather his company did the paperwork.

The City claims that Parker took commissions to which he was not entitled. Parker has always denied any wrong doing. He does admit that some accidental overpayments were made to local health care providers.

At the time of the investigation, Mayor Martin was newly-elected to his position. He says he doesn't know what, or who, prompted the federal investigation.

When asked if he felt the timing was politically motivated, Martin said: "People have to make up their own mind on that issue. All I can tell you is, I'm not a grandstanding office holder. I think people know me from my years in office, that I don't call a news conference at the drop of a hat and make a lot of accusations."

Now, Mayor Martin says those who were on the receiving end of erroneous accusations should be redeemed.

"Anybody that was the target of rumors and innuendo in the community, they are probably due a big apology," Martin said.

Copyright 2012 KCBD NewsChannel 11